Accounting & reporting

Belgian software maker Lernout & Hauspie says its Korean division faked $100 million in revenue and assigned staff to pose as customers, deceiving its auditors (ftp://ftp.lhsl.com/b ports/KoreaReport.pdf).

The AICPA develops a practice guide to assist members in observing FTC and SEC privacy and disclosure requirements established by the Graham-Leach-Bliley Act ( http://ftp.aicpa.org/public/download/news/ftc.doc ). The SBA presents outstanding entrepreneurship awards to two CPAs—David A. Cottrell of Anchorage, Alaska, and Margaret A. Johnsson of Chicago—recognized for their personal achievements

The FDIC chairman says a forthcoming reform proposal will address the allocation of deposit insurance costs among covered institutions, the timing of premium collections and inflation’s effect on insurance benefits ( www.fdic.gov/news/news/speeches/chairman/sp07mar01.html ).

Researchers warn that a potential Social Security shortfall and a shift from defined-benefit to defined-contribution retirement plans will put the onus on workers to ration benefits effectively throughout their retirement years ( www.ebri.org/ibex/ib232.htm ).

A FASB report de-emphasizes “new economy” considerations and recommends cooperation among national and international standard setters to improve business and financial reporting. Comments are due by July 1 ( accounting.rutgers.edu/raw/fasb/sr_new_economy.pdf ). FASB plans to issue final statements in July on business combinations and intangible assets. The new rules likely will

New OCC guidance says the agency is not conducting “audits of the auditors” when it reviews banks’ external audits, but instead is assessing how and whether banks are meeting requirements ( www.aicpa.org/belt/notices.htm ).

A FASAB proposed standard would eliminate the requirement to report changes in certain receivables from the public as a resource on the statement of financing. Comments are due by June 8 ( www.financenet.gov/financenet/fed/fasab/pdf/ed_para80.pdf ). New FASAB guidance amends standards for direct loans and loan guarantees, effective for periods beginning after

A commission of business and government leaders will propose ways to make the Social Security program more modern and fiscally sound ( www.ssa.gov/ssacommission.htm ). The SEC launches an online margin calculator that helps an investor estimate the likelihood of his or her broker’s issuing a margin call—for insufficient account equity—in

Canada’s securities regulator requests opinions on the pros and cons of allowing Canadian and foreign equity issuers to file financial statements according to U.S. GAAP or international accounting standards. Comments are due by June 30 ( www.iasc. org.uk/news/cen8_195.htm ). IFAC exposes a draft statement on strengthening the relationship between bank

Treasury to garnish delinquent borrowers’ SSA benefits ( www.ssa.gov/enews/debtpayment.htm ). Bush plan to invest SSA funds gives SEC commissioner pause ( www.sec.gov/news/speech/spch459.htm ).